Muzhu Mining Ltd. (CSE: MUZU)
Creating lasting wealth by developing gold and silver properties with near-term mining potential
Gold prices have surged this year, and experts believe this trend will continue. Not all gold stocks are created equal – traditional miners have costly and time-consuming tasks to complete before mining activities begin. What if there was a gold stock that didn’t require you to worry about these tasks? Wheaton Precious Metals is one such stock and is currently one of the most promising gold stocks to invest in.
Known as a precious metals streaming company, Wheaton Precious Metals does not own any mines. Instead, the company provides upfront funding to traditional miners. In exchange for the capital injection, Wheaton is able to purchase metals produced by miners at a significant discount, well below market prices. At the time of writing, silver trades close to $30 per ounce, while gold just surpassed $2330 per ounce.
Wheaton can then sell these metals at market prices. Another key advantage of Wheaton is that streaming companies like them can quickly move on to the next prospective mine. In other words, Wheaton leaves the day-to-day management of mines to traditional miners. This is also why Wheaton has as many as 18 operating mines and 26 projects in various stages of development. Consequently, this also means that streaming companies like Wheaton carry much lower risk compared to traditional miners.
While this already seems like a compelling enough reason to consider Wheaton as your top gold stock pick, there are a few key points to consider. Unlike traditional miners burdened with significant costs and debts, Wheaton has no debt and had $306 million in cash as of the most recent quarter. In that quarter, the company reported adjusted revenues of $297 million and profits of $164 million.
At the time of writing, Wheaton’s stock offers a yield of 1.2%, which is a respectable number. While not the highest yield in the market, it comes with security and much lower risk compared to traditional miners. Wheaton should be a small part of any large, diversified investment portfolio. Buy it, hold it, and watch it grow.
